HR Evaluation

How Should the HR department of Global Companies Evaluate Local Staff?

In order for global companies to succeed in overseas business, training of local staff hired locally becomes an important issue. The HR evaluation system becomes the standard for the training of local staff, so how should the HR of global companies evaluate local staff?

Should the HR evaluation system be common globally?

For global companies, those who operate beyond Japan, there are personnel who execute their duties overseas and even across multiple countries. It is, therefore, necessary for these companies to develop an environment where it can consider the future career path of their local employees. 

In order to do that while ensuring the autonomy of the Japanese headquarters and local subsidiaries overseas, it is important to develop a common HR evaluation system that applies globally.

For the career paths of personnel who can expect to be active globally, including global staff, it is necessary to allow them to experience various careers.

To secure global talent, a company must make the HR evaluation system common globally. In modern times, practices around the world have standardised with the development of personal computers and optical fibres, workflow software, etc. Each individual is their own protagonist in this world, and are in competition with similar individuals around the world. Because of that, with companies around the world seeking global talent, the “talent contest war” that crosses national boundaries has started.

Even if processes are different, standards must be the same

What is important in the HR evaluation systems of global companies is securing “transparency”, “fairness” and “consent”. Even if the HR evaluation process is different in Japan and the local subsidiary, the standards must be the same.

In making the standards the same, the HR department can achieve “transparency” in the HR evaluation system. Since the evaluation is done by a person, in order to suppress the evaluator’s natural subjectivity as much as possible, there is a need to clarify the standards for evaluation. For “fairness”, the evaluation standards of the HR evaluation system must be fairly applied, following the rules. Regarding “consent”, the evaluation standards of the HR evaluation system must be agreed upon by both the company and the employee.

For personnel involved in the mobilisation of global companies, HR/personnel strategies of a uniform standard are required. The global implementation of uniform HR evaluation standards works as a specific measure for this.

What should be evaluated is “job”, “person”, and “performance”

When evaluating a globally active member of personnel, the three requirements of  “job”, “person”, and “performance” should be addressed.

“Job” indicates work ability or outstanding expertise that is valid globally. Personnel who will be active globally are professional people who, having outstanding ability in their domain of expertise, will produce results in diverse locations.

“Person” pertains to human ability. For global companies to succeed, personnel brimming with charm, who can take leadership based on cross-cultural understanding and intercultural communication, are necessary.

“Performance” is to act and produce results. Global companies value personnel who have the performance-management ability to keep resolving problems when they occur.

It is not personnel who have one or two strengths among “job”, “person”, and “performance” that are treasured, but ones that have them in a good balance. And for a global company to succeed, a leader who has these three in good balance is necessary.

Develop global talent with a shared global HR evaluation

Global companies must keep training and securing personnel who will be active globally. In order to do that, together with establishing common HR evaluation systems globally and duly evaluating global talent, it could also be important to research the local talent market and keep maintaining a competitive salary level in the country or the region.
NEXT Seven strategies to prevent labour-management disputes overseas
PREV Patterns of Conflict that Tend to Occur in Global Companies and Cour...